After years of flip-flop on the issue of allowing foreign law firms and lawyers to practice in India, the Bar Council of India (BCI) has officially notified amendments to its 2022 rules which would enable them to do so on a reciprocal basis. The objective of the amended rules is “intended to promote India as a hub for international arbitration.”
The revised rules, titled Bar Council of India Rules for Registration and Regulation of Foreign Lawyers and Foreign Law Firms in India, 2022, were earlier gazetted on March 10, 2023 and would come into force now. A press release issued by the legal regulatory body states that the “rules have been amended and notified with the primary objective of safeguarding the interests of Indian advocates while regulating the practice of foreign law and international law in India.”
The scope of permitted legal practice for foreign lawyers, as per the new rules, would strictly be limited only to non-litigious matters involving foreign law, international law, and arbitration matters, particularly concerning cross-border transactions and international disputes which, the release states would go a long way “in promoting India as a viable destination for international arbitration without compromising the rights of Indian legal professionals.”
On the reciprocity that the new Rules will bring in, the release maintains that “Indian advocates and law firms may register as foreign lawyers or foreign law firms, allowing them to expand their practice to foreign law and international law consultancy without relinquishing their rights to practice Indian law in domestic forums.” This dual registration is expected to provide Indian lawyers with an opportunity to broaden their professional horizons while maintaining their status as advocates under Indian law.
Not only that, the BCI has implemented stringent registration and renewal requirements for foreign lawyers and law firms seeking to practice foreign law in India in a bid to “prevent undue competition and protect the interests of Indian lawyers”
The regulations mandate comprehensive documentation, including proof of primary legal qualification, no-objection certificates and declarations of compliance with Indian regulations.
The BCI’s newly amended guidelines have been unanimously hailed by the legal industry. Speaking to FE, Rishabh Shroff, scion of top tier law firm Cyril Amarchand Mangaldas (CAM) described it as “a long pending move.” Anand Desai, managing partner of DSK Legal, specifically welcomed the fact that “the amendment also introduces the concept of an ‘Indian Foreign Law Firm’ which when registered with the BCI enables it to engage in legal practices in both Indian and foreign law, including representing clients in litigation before Indian courts, tribunals and other adjudicatory forums.”
Senior corporate and business lawyer Hemant Batra, who leads new ventures and growth opportunities at another top-tier firm, Shardul Amarchand Mangaldas, called the BCI’s move as “both timely and strategic” while lauding the introduction of the Indian-foreign law firm “as a forward-looking model, enabling Indian legal entities to engage confidently in cross-border work without relinquishing their domestic litigation rights.”
Amar Gupta, Joint Managing Partner of the prestigious law firm JSA told FE that the initiative would “deepen and strengthen the Indian legal market’s ability to offer sophisticated legal advice to domestic and international clients doing business in India and globally.’
Haigreve Khaitan, Senior Partner at top tier law firm Khaitan & Co, while hailing the move as a positive step, also opined that ‘it must be accompanied by appropriate regulatory reforms for Indian law firms to create a level playing field and allow them to compete successfully on the global stage while spurring domestic growth.”
Significantly though, in the much-lauded UK-India FTA bilateral treaty which was signed just days ago, legal services have been totally excluded. In a release issued after the signing of the landmark treaty, the Law Society of England and Wales, a 200 year old independent professional body supporting solicitors in the UK criticised the failure to include legal services in FTA as “a missed opportunity for both UK and Indian economies.”
“We are disappointed to see that the UK-India FTA has been agreed without reference to legal services,” said Law Society president Richard Atkinson. “ We call on the UK government to renew its support for legal services trade between the two countries,” he added while claiming that a deal including the legal services sector has the potential to reap massive economic benefits for both countries and would have been highly beneficial for members working with the Indian legal profession.
He urged the two countries to hold renewed discussions to progress on legal services market access, especially in view of the regulations announced by the Bar Council of India in March 2023 for foreign lawyers and law firms which currently remain in limbo.”
